Statkraft AS: Result for the first quarter of 2014

15.05.2014 08.00 | stock exchange information

Solid quarterly result in a market characterised by lower prices

(Oslo, 15 May 2014) In the first quarter of 2014, Statkraft achieved an underlying[1] operating profit before depreciation (EBITDA) of NOK 3836 million, compared with NOK 4180 million in the corresponding period in 2013. The net profit was NOK 2800 million, compared with NOK 443 million in the first quarter of 2013.

The average Nordic power price was 30.2 EUR/MWh. This is a decline from 42 EUR/MWh in the first quarter of 2013. The Group's power production totalled 15.4 TWh, compared with 17.4 TWh in the corresponding quarter of 2013.

"Statkraft's underlying EBITDA for the first quarter ended at NOK 3836 million, which is NOK 344 million below the corresponding quarter in 2013. Lower revenues from Nordic hydropower are largely counteracted by significant revenues from Statkraft's market operations and increasing contributions from wind power. Based on the market situation, we are satisfied with this result," says President and CEO Christian Rynning-Tønnesen.

Changes in exchange rates yielded positive currency effects linked to the financial items, compared with negative currency effects in the same period last year. The currency effects are offset by translation effects in equity. The net profit ended at NOK 2800 million, which is an improvement of NOK 2358 million compared with the first quarter of 2013.

As of 1 January 2014, Statkraft took over operating responsibility for Sheringham Shoal, which is an offshore wind farm in the UK. A Memorandum of Understanding was signed between Statkraft, NTE, Agder Energi and TrønderEnergi in the first quarter of 2014 in order to realise 600 MW of wind power on the Fosen peninsula in Central Norway.

"Statkraft aims to develop more wind power. These activities are an important part of our further development as a leading player in renewable energy," says Rynning-Tønnesen.

Statkraft is Europe's largest generator of renewable energy and the leading power company in Norway.The Group owns, produces and develops hydropower, wind power, gas-fired power and district heating. Statkraft is a major player in European power trading and has 3700 employees in more than 20 countries.